NEW HDB FLATS (Effect of policy changes on prices)

Dr S. Vasoo asked the Minister for National Development whether, as a result of the recent changes in public housing policy, the prices of new Housing and Development Board flats will remain within the reach of the average income earners in the near future.

Mr Dhanabalan: Mr Deputy Speaker, Sir, the recent changes in public housing policy enables more Singaporeans and Singapore permanent residents to buy resale HDB flats from the open market. The impact on prices of flats of these changes are thus restricted only to the resale market.

In the case of new flats, HDB will continue to build them according to demand. The Board will continue to ensure that a sufficient range of flat types and selling prices would be available for Singaporeans to choose to suit their income levels.

Dr S. Vasoo (Tiong Bahru GRC): Sir, will there be a slow-down in the building of 3-room flats, and will there be adequate 3-room flats available to meet our future needs?

Mr Dhanabalan: The HDB has stopped building 3-room flats because it has a stock of about 8,000-odd 3-room flats and a waiting list of only 3,000 applicants for 3-room flats. So obviously until we sell the major proportion of our 3-room flats, HDB will not be building any more 3-room flats.